Director Of Active Non Compliant Company

The Ministry of Corporate Affairs has recently notified the Companies (Appointment and Qualification of Directors) Rules, 2014. As per the new rules, Directors of companies that have not filed

ACTIVE eForm will be marked as “Director Of Active Non Compliant Company”. In this article, we look deeper into this new regulation.

ACTIVE eForm

As per MCA rules notified earlier, all companies incorporated before 1.1.2018 are required to file ACTIVE eForm before 15th June 2019. Failure to file ACTIVE eForm could lead to a penalty of Rs.10,000 and the company being marked as ACTIVE Non-Compliant.

MCA Notification

As per the latest notification from MCA, the tagging of non-compliant Companies/Directors for not filing eForm Active (INC-22A) is complete. The form (ACTIVE) has since been made available for filing purposes. Now, the ACTIVE Form is available and can be filed with a fee of INR 10000. Stakeholders are advised to download the latest version for filing purposes.

Director Of Active Non Compliant Company

Under the new regulations, Directors of companies that have not filed ACTIVE eForm for any of the company will be marked as Director Of Active Non Compliant Company. Once the marking is made, they will be able to change it to Director of ACTIVE compliant company only after filing all overdue

MCA annual returns. Thus, its important for all Directors to ensure that they are maintaining compliance for all companies in which they are involved - or pay stringent penalties in the future.

Companies (Appointment and Qualification of Directors) Rules

The MCA on 16th May 2019 has released the Companies (Appointment and Qualification of Directors) Rules. The rules are reproduced below for ready reference:

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 16th May, 2019

G.S.R. 368(E).—In exercise of the powers conferred by the second proviso to sub-section (1), subsection (4), clause (f) of sub-section (6) of section 149, sub-sections (3) and (4) of section 150, section 151, sub-section (5) of section 152, section 153, section 154, section 157, section 160, sub-section (1) of section 168 and section 170 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Appointment and Qualification of Directors) Rules, 2014, namely:— 1. (1) These rules may be called the Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2019. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Companies (Appointment and Qualification of Directors) Rules, 2014, after rule 12A, the following rule shall be inserted, namely:- ‘12B. Directors of company required to file e-form ACTIVE.- (1) Where a company governed by Rule 25A of the Companies (Incorporation) Rules, 2014, fails to file the e-form ACTIVE within the period specified therein, the Director Identification Number (DIN) allotted to its existing directors, shall be marked as “Director of ACTIVE non-compliant company”. (2) Where the DIN of a director has been marked as “Director Of Active Non Compliant Company”, such director shall take all necessary steps to ensure that all companies governed by rule 25A of the Companies (Incorporation) Rules, 2014, where such director has been so appointed, file e-form ACTIVE. (3) After all the companies referred to in sub-rule (2) file the e-form ACTIVE, the DIN of such director shall be marked as “Director of ACTIVE compliant company”.’.

[F. No. 1/22/2013-CL-V] K. V. R. MURTY, Jt. Secy.

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Frequently Asked Questions

Common questions about Director of ACTIVE Non.

The ACTIVE eForm (INC-22A) is a form that all companies incorporated before January 1, 2018, are required to file with the Ministry of Corporate Affairs (MCA) before June 15, 2019. Failure to file this form can lead to a penalty of Rs.10,000, and the company being marked as ACTIVE Non-Compliant.

If a company fails to file the ACTIVE eForm within the specified period, the Director Identification Number (DIN) of its existing directors will be marked as "Director of ACTIVE non-compliant company." This marking will remain until the company files the overdue ACTIVE eForm and all other overdue MCA annual returns.

The Companies (Appointment and Qualification of Directors) Rules, 2014, were notified by the MCA to provide guidelines and regulations regarding the appointment, qualifications, and responsibilities of directors in companies registered in India. The rules were recently amended to include provisions related to the ACTIVE eForm compliance.

As per the MCA notification, failure to file the ACTIVE eForm can lead to a penalty of Rs.10,000 for the company. Additionally, the directors of the non-compliant company will be marked as "Director of ACTIVE non-compliant company," which can have implications for their future appointments and responsibilities.

Yes, a director can be marked as a "Director of ACTIVE non-compliant company" for multiple companies if they have not ensured that all the companies they are associated with have filed the ACTIVE eForm and other overdue MCA annual returns.

According to the article, the initial deadline for filing the ACTIVE eForm was June 15, 2019, for companies incorporated before January 1, 2018. However, the form is still available for filing with a fee of Rs.10,000.

The article advises stakeholders to download the latest version of the ACTIVE eForm (INC-22A) for filing purposes. Companies can file the form online through the MCA portal or seek assistance from professional services firms.

The "Director of ACTIVE non-compliant company" tag indicates that the director has not ensured compliance with the ACTIVE eForm filing requirement for one or more companies they are associated with. This tag may impact their credibility and future appointments as a director.

The article does not explicitly mention any restrictions on a director being appointed in a new company while being marked as a "Director of ACTIVE non-compliant company." However, it is advisable for directors to maintain compliance and remove the non-compliant tag to avoid any potential issues or penalties in the future.